accountinglads
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FITW tax meaning refers to the federal income tax that is deducted by your employer on your salary. It operates by approximating your yearly tax bill and splitting it up in every pay period. This money goes directly to the IRS and the employer is sure to collect taxes all year round. This is calculated according to your income, filing status and withholding elections based on your W-4 form. In case when you file your tax return your total FITW tax paid is matched against what you actually owe then a refund is determined or a balance due.